# Transaction examples

The following examples cover most of the use cases.

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Information – Assumptions about all the following examples

  • The initial transaction amount is €150 and is initiated by the cardholder
  • At the transaction time, the cardholder's wallet has a balance of €1000
  • At the transaction time, the cardholder has no pending transactions. Therefore, their Balance and Authorized Balance are identical.

# Accepted transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization.
  • The payment is received by the merchant.
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Settlement S 150 850 850

# Declined transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank declines the payment.
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Decline I 150 1000 1000

# Canceled transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization.
  • The transaction is canceled by the merchant, before the settlement
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Reversal V 150 1000 1000

# Gas station transaction

  • The cardholder requests a €150 authorization at a gas station before refilling their vehicle.
  • The cardholder's bank accepts the authorization (#1).
  • The cardholder actually fills for €90 of fuel.
  • The difference between the authorization amount and the actual amount (€60) is reversed (#2)
  • The actual amount (€90) is settled (#3)
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Reversal V 60 1000 910
3 Settlement S 90 910 910

# Specific case of automated fuel dispensers in the US and Canada

Please note that Treezor applies a fixed pre-authorized amount of €160 for all pre-authorization requests made in the USA or Canada for automated fuel dispensers (AFD) payments.

This applies to transactions with the following values:

  • "mccCode":"5542"
  • "paymentCountry":"USA" (or "CAN")
  • "paymentLocalAmount":"1"

In such cases, additional information can be found in the authorizationNote:

  • Specific to AFD: fixed amount authorization — Indicates that the fixed amount has been applied.
  • Fixed amount adjustment — Indicates that the actual amount has been charged and the leftover, if any, is reversed.

Below is a sample of a cardtransaction.create webhook corresponding to our example. As previously described, the paymentLocalAmount is $1, and the paymentAmount is €160.

# Multi-settlement transaction

  • The cardholder purchases multiple products on an internet shop
  • The cardholder's bank accepts the authorization (#1).
  • The merchant does a settlement per product (#2, #3)
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Settlement S 75 925 850
3 Settlement S 75 850 850

# Multi-reversal transaction

  • The cardholder purchases multiple products on an internet shop
  • The cardholder's bank accepts the authorization (#1).
  • The merchant makes a cancellation per product (#2, #3)
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Reversal V 75 1000 925
3 Reversal V 75 1000 1000

# Non-Euro transaction

  • The cardholder pays for service or products in a currency other than Euro, in a physical or internet shop.
  • The cardholder's bank accepts the authorization at the current exchange rate (#1).
  • The merchant cashes in the transaction at the settlement-time exchange rate
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Information – Assumptions

  • Exchange rate of £100 = €150 at authorization time
  • Exchange rate of £100 = €160 at settlement time
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Settlement S 160 840 840

# Refunded transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization (#1).
  • The merchant settles the payment (#2)
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Settlement S 150 850 850

If the merchant decides to refund the transaction after settlement.

# Accepted refund

# Operation Status Amount Balance Authorized Balance
850 850
3 Refund R -150 850 850
4 Settlement S -150 1000 1000

# Refused refund

# Operation Status Amount Balance Authorized Balance
850 850
3 Declined I -150 850 850

# Accepted transaction, without settlement nor reversal

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization (#1).
  • No settlements nor reversals occur.

The authorization remains active, and funds are blocked on the Authorized Balance.

# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850

If no further action is taken, the authorization is considered as expired after 10 days (on the night of the 10th to 11th day).

The Authorized Balance is then freed of this transaction.

# Operation Status Amount Balance Authorized Balance
1 - - - 1000 1000

When the authorization expires,

  • no cardtransactions.create webhooks are sent at all (Because no additional operations are generated).
  • a balance.update webhook is sent.

# Accepted transaction, refused afterwards

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization (#1).
  • The transaction is then refused within one to two hours (#2).
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 150 1000 850
2 Decline I 150 1000 1000

💡 When an incident occurs on the scheme network, a previously approved authorization can fail to reach the "acquereur".

When this happens, the network catches the error and immediately triggers a transaction refusal. Treezor is informed within one to two hours, and the transaction initially authorized (A) will be declined (I).

# Direct settlement transaction

  • The merchant bypasses the authorization and proceeds to a "Direct Settlement"
# Operation Status Amount Balance Authorized Balance
1000 1000
1 Settlement S 150 850 850

# Convoluted example

Consider the following scenario:

  • A user has a balance of €1,000.
  • The user orders 3 products at the same time on a marketplace (#1).
  • One €100 product, a second €100 product and one €300 product.
  • Later that day, the user tries to order a €700 product, but their authorized balance is insufficient (#2).
  • The next day, the seller of the €300 product informs him that this product is not available anymore and cannot fulfill the order (#3).
  • The user tries again to order that €700 product (#4).
  • The sellers of the €100 products and €700 product inform them that they shipped their respective products (#5, #6, #7).
  • One week later, the user returns one of the €100 products for a refund (#8, #9).

# Associated wallet operations

# Operation Status Amount Balance Authorized Balance
1000 1000
1 Autorization A 500 1000 500
2 Declined I 700 1000 500
3 Reversal V 300 1000 800
4 Autorization A 700 1000 100
5 Settlement S 100 900 100
6 Settlement S 100 800 100
7 Settlement S 700 100 100
8 Refund R -100 100 100
9 Settlement S -100 200 200

# Explanations

  • #2: Even though the user has a Balance of €1,000 at the time, their Authorized Balance is of €500, insufficient to authorize a €700 payment.
  • #3: The unavailable €300 product is reversed, freeing up the Authorized Balance from €500 to €800.
  • #4: The €700 purchase is now acceptable.
  • #5,6,7: Each merchant of the marketplace receives an independent settlement
  • #9: Refund appears as negative-value settlements
Updated on: 5/7/2024, 1:35:14 PM